Harnessing the Diaspora for Development in the Europe and Central Asia Region

1. Harnessing the Diaspora for Development in the Europe and Central Asia Region Timothy Heleniak University of Maryland heleniak@umd.edu July 2011 Background paper prepared for ECSPE Task manager SudharshanCanagarajah (Scanagarajah@worldbank.org)

2. Outline • Introduction 2. Review of the Literature on Diasporas and Development 3. The Size and Composition of the Diaspora Populations from the ECA Countries 4. Review of Current Diaspora Engagement Policies of the ECA Countries 5. Policy Recommendations to Increase Diaspora Engagement in the ECA Region

3. Unique aspects of ECA diaspora • ECA diaspora is largest in both absolute and percentage terms of all development regions • Of the total global stock of migrants of 215.8 million in 2010, 43 million emigrated from an ECA country • 3.1 percent of the world’s population resides outside of country of birth but 10.7 percent of ECA population • History diasporas in the ECA region is long and complex • Now 30 countries versus 8 in 1990 • Many measurement and conceptual issues with ECA diaspora

4. Types of diaspora engagement • Tracking of diaspora populations • Assistance in destination country • Dual citizenship • Remittance sending • Investment and entrepreneurship in homeland • Diaspora voting and advocacy • Philanthropy and volunteering • Knowledge transfer to homeland • Diaspora tourism and “nostalgia” trade • Return migration and travel

5. Sources of data on the ECA diaspora • United Nations Global Migration Database (mix of foreign-born and citizenship) • World Bank Bilateral Migration Matrix (more comprehensive) • ILO’s LABORSTA database (not all of ECA) • Eurostat migration data • OECD migration data (including brain drain) • Foreign born and ethnic diaspora data in Soviet and post-Soviet censuses • Russian census and migration data • The Russian Federal Migration Service (not all labor migrants) • American Community Survey (detailed)

6. 10 percent of population originating in an ECA country reside outside that country, versus 3 percent globally • Large diasporas could contribute to development

7. Host countries of the ECA diaspora The ECA diaspora is concentrated in a few countries Half reside in just four countries – Russia, Germany, Ukraine, and Kazakhstan Sizable ECA diasporas in other countries of Western Europe such as Italy, Spain, the United Kingdom, Greece, and Austria and in the United States and Canada Nearly half the ECA diaspora population resides in another FSU state, mainly Russia, and about 35 percent reside in a high-income OECD country

8. OECD’s brain drain database now includes more ECA countries • Globally, emigration rate of tertiary-educated is 5.4 percent • ECA countries follow pattern of smaller and poorer countries having the largest percent of highly-skilled persons emigrate (except Kazakhstan) • Globally, 21 percent of migrants have a tertiary education. The overall educational levels of ECA migrants are generally much higher than this.

9. The ECA diaspora populations in the United States are quite highly educated, more so than overall foreign-born • Also high levels of U.S. citizenship and English-language skills

10. ECA diaspora populations are disproportionally represented in management and professional occupations, have higher incomes, and own more expensive homes

11. Diaspora institutions in the ECA region • Ministry: Armenia, Georgia, Serbia, Kosovo • Sub-ministry: Russia, Latvia, Kazakhstan, Uzbekistan, Poland, Albania, Czech Republic, Romania, Bulgaria, Macedonia, Montenegro, Bosnia and Herzegovina • Other: Ukraine, Lithuania, Azerbaijan, Tajikistan, Slovakia, Slovenia, Turkey, Hungary • No diaspora office: Belarus, Estonia, Moldova, Kyrgyzstan, Turkmenistan, Croatia See text and annex 4 for details.

12. Many ECA countries are highly dependent on remittances • On average, remittances make up 0.7 percent of GDP • Need to different diaspora policy based on level of remittances

13. Examples of best practice in diaspora policy in the ECA region • Lithuania • Department of National Minorities and Lithuanians Living Abroad (DNMLLA) • “The Inter-institutional program for cooperation with Lithuanian communities abroad for the year 2008-2012” • Targets old and new diaspora differently • Armenia • In 2008, Ministry of Diaspora was established • Dual citizenship in 2007 • Different focuses on financial flows, technology transfer and entrepreneurship • Montenegro • The Diaspora centre within the Ministry of Foreign Affairs is the main institution coordinating and promoting Diaspora • Comprehensive “Strategy of Cooperation with Diaspora for Period 2011-2014”

14. Migration policies of main destinations for ECA diaspora • Russia: from restrictive to attempts at regulating labor migration and encouraging diaspora, many illegal from FSU • Europe: fears of massive migration are over but doors not completely open • Israel: wary welcome of high-educated ECA Jewish population • United States: ineffective migration policy but open to educated from ECA region

15. Thank you